Al Bahar, Al Mehairbi set up equipment leasing JV

The new venture, Gulf Union Equipment Rental Company LLC, has been set up as a partnership between Abu Dhabi-based Mohammed Abdulrahman Al Bahar (MAB), and Saeed Matar Saeed Hamr Ain Al Mehairbi. The Dhs22m ($6m) project is owned 51 percent by Al Mehairbi and 49 percent by MAB. It will provide leasing services of all types of construction and industrial equipment.

"This is a new concept being introduced to the UAE and we are very pleased to be a part of it," said Mohamed Saif Al Mazrouei, Chief Executive Officer of the OPB.

"The launch of this project under the UAE offsets program signifies the role being played by OPB to diversify and expand the role of the private sector through participation in new, innovative initiatives at different levels," he added.

Gulf Union Equipment Rental Company LLC will offer a variety of equipment for lease to construction and industrial companies, as well as operators of municipal services. The equipment offered for lease by the company includes: trucks, loaders, bulldozers, excavators, soil compactors, dumpers, and fork lifts.

"As a company with a long-standing presence and commitment to the UAE and region, we are pleased that the OPB has provided us the opportunity and platform to create this exciting venture which will support the local industrial drive," stated Mohamed Abdulrahman Al Bahar.

Gulf Union Equipment Rental Company LLC will be leasing equipment and assets for new small and medium-sized enterprises, to take the financial burden of buying equipment and assets off their balance sheets and allow them to focus on their core business demands, in terms of working capital, quality, output, and revenue generation," said Basem Mousa, Branch Manager of MAB.

"The dramatic increase in the property and infrastructure developments in the UAE and neighboring countries is a key driver for the company. We believe there is significant growth ahead, which small and medium enterprises should not miss out on; we seek to offer a flexible lease structure to enable, among others, small and upcoming businesses to accelerate their growth," stated Saeed Matar Al Mehairbi.

He added that "the joint-venture comes at a time where industrial drive is gaining momentum, fuelled by a booming business environment. In line with the Emirate's vision to create sustainable growth, our aim is to support SMEs to benefit from business opportunities and help them grow."

The project is targeting leasing, a growing market in the UAE, with a promising potential for attracting investments in the manufacturing sector. It also enjoys promising prospects for UAE nationals in terms of business growth, job opportunities, and transfer of know-how.

"We are pleased to have played a major role in setting up this unique venture. We look forward to expanding our cooperation with our partners in this project by coming up with other creative initiatives," said Saif Mohamed Al Hajeri, Director of the Offset Ventures Unit at the OPB.

Khaleefa Al Hemairi, Project Manager at the OPB, said that the project was established under the UAE Offset Program in fulfillment of an offset obligation by the MAB.

"We always encourage local investors and defense contractors to take advantage of the facilities offered by the OPB in implementing the UAE offset program," he added.

Global Force Capital (GFC), who acted as Offset Advisors to MAB, were instrumental in the development and structuring of this venture. Hatem Fawzy, managing partner of GFC commented positively on the prospects for the business. "This venture offers an efficiently delivered industrial solution to the needs of SMEs and burgeoning industrial business and a number of transactions are presently under discussion which will see the company launch profitably within its first few months in business," he said.